Photo/Illutration A hydrogen fuel cell system developed by Honda Motor Co. and General Motors Co. Photo taken Jan. 24 in a Detroit suburb (Takao Shinkai)

DETROIT--Honda Motor Co. announced it has begun commercial production of a new hydrogen fuel cell system jointly developed with General Motors Co.

The auto giant said it had managed to reduce costs to one-third.

The battery will be fitted to the CR-V sports utility vehicle that will be released in North America and Japan by the end of the year.

Honda said it will also be sold to other companies for use in trucks and other commercial vehicles. Data center operators are expected to rely on the battery as an emergency power source.

The fuel cell systems are produced at Fuel Cell System Manufacturing LLC, a 50-50 joint venture by Honda and GM, in Michigan. 

“Pitching our product to the market first, we will demonstrate fuel cells have already become reliable for practical use,” said Tetsuo Suzuki, vice president of the joint venture. “From this point onward, we will expand our sales network further.”

Fuel cells generate electricity when hydrogen reacts with oxygen in the air. Automobiles mounted with that type of battery do not leave a carbon footprint, like electric cars.

The challenge to date involved the hefty price tags of hydrogen and fuel cell systems. Another problem was the paucity of available hydrogen stations.

The fuel cell created by Honda and GM replaced some precious metals, such as platinum and gold, with more affordable materials. The battery’s manufacturing process was automated to rein in costs.

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